Executive Post Graduate Diploma in Management (EPGDM)

Course outline

Course Name : Management & Financial Accounting

Course
: MFA
Abbreviation

Course code : MGT ---

Course credit : THREE

Learning Outcomes:
On completion of this unit, student should be able to:

 Understand how to furnish information about the firm's economic resources, claims
against those resources, owners’ equity, and changes in resources and claims
 Understand how cost control achieve the targeted cost objectives through the realization of
predetermined cost targets to reduce costs
 Understand the significance of cost control. Understand the various tools and techniques
of costing.
 Understand the functions of each responsibility center within an organization and what are
the inter-linkages between those centers
 Be able to identify financial strengths and weaknesses of a business through appropriate
analysis

Teaching Outline:
Introduction to Accounting: Meaning, Basic Concepts, Principles of Accounting, Accounting
Equation, Double entry system of accounting, Accounting Mechanism Journal, Ledger, Trial
balance, Capital & Revenue items and Depreciation. Financial Accounting vs. Management
Accounting. (Theory and Numericals)
Corporate Financial Reporting: Objectives of Corporate Financial Reporting, Profit and Loss
statement, Balance Sheet and Cash Flow Statement as per the Schedule III of Companies Act of
2013. Objectives and principles of IFRS (International Financial Reporting Standards) and Indian
Accounting Standards (IND AS). Annual Report and its Contents. (Theory only)

Analysis and Interpretation of Financial Statements: Ratio Analysis – Meaning of ratio,

classification of ratios, Liquidity ratios, capital structure or solvency ratios, turnover or activity
ratios, Profitability ratios, Advantages and Limitations of ratio analysis and its computations
(Theory and Numericals)

Cash Flow Statements: Meaning of Cash Flow statements, Classification of cash flows (AS-3),
Objectives & Significance of cash flow statement in reporting, Treatment of items, preparation of
Cash Flow statements. (Theory and Numericals)

Cost Concepts and Cost Accounting: Concept of cost, cost centre, cost unit, methods and
Technique of costing, Classification of costs, Elements of costs, Cost control and Cost reduction.
(Theory only)

Marginal Costing: Meaning of marginal cost, marginal costing, CVP analysis and Break-Even
analysis, Contribution and P/V ratio, Margin of Safety, Key factors, Application of Marginal
Costing. (Theory and Numericals)

Standard Costing and Variance Analysis: Meaning of Standard cost and Standard costing,
Application of Standard costing, Types of standards, Variance Analysis, Material and Labor
analysis. (Theory and Numericals)

Budgetary Control: Meaning of budget, budgetary control, Types of Budgets and their
objectives, Computation of Flexible Budget and Cash Budget only. (Theory and Numericals)

Session & Topics:

Session Topics

Module 1 Introduction to Accounting: Meaning, Basic Concepts, Principles of

(4 Hours) Accounting, Accounting Equation, Double entry system of accounting,
Accounting Mechanism Journal, Ledger, Trial balance, Capital & Revenue
items and Depreciation. Financial Accounting vs. Management Accounting.
(Theory and Numericals)
Module 2 Corporate Financial Reporting: Objectives of Corporate Financial
(1 Hour) Reporting, Profit and Loss statement, Balance Sheet and Cash Flow
Statement as per the Schedule III of Companies Act of 2013. Objectives and
principles of IFRS (International Financial Reporting Standards) and Indian
Accounting Standards (IND AS). Annual Report and its Contents. (Theory
 only)
Module 3 Analysis and Interpretation of Financial Statements: Ratio Analysis –
(3 Hours) Meaning of ratio, classification of ratios, Liquidity ratios, capital structure or
solvency ratios, turnover or activity ratios, Profitability ratios, Advantages
and Limitations of ratio analysis and its computations (Theory and
Numericals)
Module 4 Cash Flow Statements: Meaning of Cash Flow statements, Classification of
(2 Hours) cash flows (AS-3), Objectives & Significance of cash flow statement in
reporting, Treatment of items, preparation of Cash Flow statements. (Theory
and Numericals)
Module 5 Cost Concepts and Cost Accounting: Concept of cost, cost centre, cost
(1 Hour) unit, methods and Technique of costing, Classification of costs, Elements of
costs, Cost control and Cost reduction. (Theory only)
Module 6 Marginal Costing: Meaning of marginal cost, marginal costing, CVP
(3 Hours) analysis and Break-Even analysis, Contribution and P/V ratio, Margin of
Safety, Key factors, Application of Marginal Costing. (Theory and
Numericals)
Module 7 Standard Costing and Variance Analysis: Meaning of Standard cost and
(3 Hours) Standard costing, Application of Standard costing, Types of standards,
Variance Analysis, Material and Labor analysis. (Theory and Numericals)
Module 8 Budgetary Control: Meaning of budget, budgetary control, Types of
(3 Hours) Budgets and their objectives, Computation of Flexible Budget and Cash
Budget only. (Theory and Numericals)

Recommended Resources:

Essential Textbook:
1. Management Accounting Text, Problems and Cases by Khan and Jain (Latest Edition)
Tata McGraw-Hill Publications

Reference books:
1. Managerial Acct - 2nd Edition - Sawyers/ Jackson/ Jenkins/ Arora - Cengage.
2. Cost and Management Accounting by Colin Drury., Cengage Learning
3. Introduction to Management Accounting by Charles Horngreen et al., Prentice Hall.
4. Financial Accounting by B.S.Raman
5. ICAI web materials on Management Accounting
6. Cost and Management Accounting, by M. N. Arora, Latest Edition, Vikas Publishing
House
7. CIMA Financial Management Magazine